Investment Ideas

DEFINITION of 'Investment Ideas'

Specific views, plans or ideas on ways to invest money effectively. Investment ideas typically involve the expertise and advice of an investment advisor who recommends different investment tools based on individual circumstances.

BREAKING DOWN 'Investment Ideas'

One of the main factors determining what investment idea a particular investor will employ depends on that person's stage of life. Investors who are young can take on more risks, and an advisor will likely recommend stocks or mutual funds to younger investors. Investors who are approaching retirement, however, will most likely find it more beneficial to take on lower-risk, short-term investments such as bonds and T-bills. Another factor that affects investment ideas is the risk-return tradeoff. Each investor has his or her own sensitivity to risk, which will influence investment decisions.